Power of Attorney and Legal Documents For BKPM

Untitled
Smart Ways to Register Franchise Business in Indonesia
November 30, 2015
SMART Legal Consulting
Investors Required to Make a Presentation Where, When and How?
December 21, 2015

Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal or “BKPM”) has been the go-to place for foreign investors seeking to obtain the required licenses in order for them to start and maintain their investment in Indonesia.

Nowadays, it is very common for those investors to authorize other parties to sign and/or conduct the application to BKPM using the “Power Of Attorney” (Surat Kuasa). While Power of Attorney is a simple way to delegate investors’ responsibility to parties who provide application services such as advocates, or consulting services. However, there are several required documents that must be fulfilled by the authorized party as their legality document to verify the Power of Attorney.

Both Power of Attorney and its legality documents is two of the most important items to checklist in submitting a license application to BKPM. Without those documents, the application will not be processed and will be rejected, thus subjecting the applying investors to do a revision on the application, which then must be re-submitted. Revising applications to BKPM will take time, and some documents required for the application, such as Circular of Shareholders Resolution, is time-sensitive.

As stipulated in the BKPM Regulation No. 14 of 2015 and No. 15 of 2015, both issued in October 26, 2015, there are different legality documents for different authorized parties. Legality documents will depend on which party the investors choose to be given authorization to sign and/or conduct the application to BKPM.

Based on Article 58 paragraph (7) of BKPM Regulation No. 14 of 2015 and Article 78(4) of BKPM Regulation No. 15 of 2015, the parties and the required legality documents are as follows:

kotak

Previously in practice, BKPM has accepted Power of Attorneys with multiple authorized parties with only 1 (one) legality document. For example, there are 3 (three) authorized parties but only 1 (one) is an Advocate with a valid Advocate Card (Kartu PERADI), so the Power of Attorney is attached with only 1 (one) legality document for all three authorized parties.

However, since the issuance of BKPM Regulation No. 14 and 15 on October 26, 2015, BKPM has rejected license applications due to incomplete Legality Documents. The solution to this is to ensure that all authorized parties listed in Power of Attorney have valid legality documents, and to secure the required legality documents as needed before submitting the license application to BKPM.

For Associate Lawyers working in Law Firms who have no Advocate Card (Kartu PERADI) can use the Temporary Advocate Card (KIS or Kartu Izin Sementara). If they have not applied for KIS yet, the Law Firm/Law Office must issue a Statement Letter regarding the Associate Lawyers’ (or other Employees) status as Employees in the Firm/Law Office.

HOW CAN SMART LEGAL CONSULTING HELP YOU?

SMART Legal Consulting has extensive experience in assisting Foreign Investors to establish FDI Company or Representative Office in Indonesia

If you need immediate assistance, please contact the SMART Help Desk at:

E:  info@smartcolaw.com

H: +62821-1234-1235

Comments are closed.

 
Fairus Harris Senior Associate
Got question? Leave your message here.